Relating to a limitation on civil liability of business entities in connection with a breach of system security.
Effective on 9/1/25
Summary
The law creates a safe‑harbor for Texas businesses with fewer than 250 employees that own or license sensitive personal data. If such a business can show it had a cybersecurity program meeting specified standards at the time of a breach, victims cannot recover punitive (exemplary) damages. The measure aims to encourage stronger security practices without adding new private lawsuits.
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